California posts good export numbers again

Adjusting the numbers for inflation shows that that state has resumed pre-recession levels of exporting
By Patrick Burnson, Executive Editor
September 12, 2011 - SCMR Editorial

In another sign that the United States economy is not heading into a second dip, California exporters recorded yet another month of double-digit growth in July, the 21st consecutive month in which the state’s export trade increased on a year-over-year basis, according to an analysis by Beacon Economics of foreign trade data released last week by the U.S. Commerce Department.

Goods exported by California businesses in July had a value of $13.15 billion, a nominal gain of 10.9 percent over the $11.86 billion reported in the same month last year. The state’s manufactured exports edged up by 6.1 percent, while non-manufactured exports (chiefly raw materials and agricultural products) rose 24.7 percent. Re-exports, meanwhile, saw a 19.0 percent rise.

“Adjusting the numbers for inflation shows that we have resumed pre-recession levels of exporting,” observed Jock O’Connell, Beacon Economics’ International Trade Adviser.

Beacon Economics expects continued gains in California’s export trade through the remainder of the year, as the U.S. and world economies overcome the negative shocks that hit earlier in the year. “Growth will accelerate as the year moves on and this will definitely boost those export figures,” said Christopher Thornberg, Beacon Economics’ founding partner.

He noted, however, that there are fundamental growth limitations based on debt issues in Europe and mild inflationary pressures in the developing world.

“There will be growth. It just won’t be as robust as we would prefer it to be,” O’Connell added.

Meanwhile, other economists are revising earlier forecasts in light of recent fluctuations in supply chain metrics and production cycles.

In an IHS webcast staged last week, shippers were also told that the global economy was gripped by a “lost decade,” but that a double dip recession is unlikely.

“The global economic recovery has stalled, said IHS chief economist Nariman Behravesh. “We have downgraded our forecast for both the United States and Europe on recent data that suggests a much more fragile recovery.”



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Global trade management technology provider Amber Road (formerly known as Management Dynamics) said this week it has acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions.

While it is already reaping myriad benefits from ORION (On-Road Integrated Optimization and Navigation), a proprietary routing platform for its drivers rolled out in late 2013, transportation and logistics bellwether UPS announced big plans for the technology this week.

Diesel prices continued their recent stretch of gains with a 3.6 cent increase this week to $2.936 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

TSA has reaffirmed its March 9 general rate increase (GRI) of $600 per 40-foot container (FEU) for all shipments, and lines have also filed a previously announced April 9 GRI in the same amount.

Article Topics

News · Global · Supply Chain · Management · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.